German automotive giants Volkswagen and Mercedes-Benz have announced their financial results for the first quarter of 2025. Both companies experienced significant declines in their profits. Volkswagen’s net profit fell by 40.6% compared to the same period last year, falling to 2.19 billion euros. Mercedes-Benz’s net profit fell by 43% to 1.73 billion euros.

German automotive manufacturers’ profits fell

The Volkswagen Group achieved an operating profit of 2.87 billion euros during the first quarter. This figure represents a 37% decrease compared to the same period last year. The group’s profit margin also fell from 6% to 3.7%. The group’s total revenue, which was 75.64 billion euros in the first quarter of last year, increased by 2.8% to 77.56 billion euros in the same period this year.

Rising vehicle sales in markets outside China were effective in the revenue increase. The number of vehicle deliveries also increased by 0.9%, reaching 2.1 million units. The Volkswagen Group includes brands such as Audi, Bugatti, Seat, Skoda and Porsche.

On the Mercedes-Benz front, revenues fell by 7.4% in the first quarter to 33.22 billion euros. The company’s vehicle deliveries also decreased by 3.6% to 446,300 units. In a statement made by Mercedes-Benz, it was stated that if the customs tariffs implemented by the US continue; operating profit, free cash flow and sales revenues will be negatively affected.

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